Stock Analysis

Insider Buying: The Accrol Group Holdings plc (LON:ACRL) Executive Chairman Just Bought 2.0% More Shares

AIM:ACRL
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Investors who take an interest in Accrol Group Holdings plc (LON:ACRL) should definitely note that the Executive Chairman, Daniel Wright, recently paid UK£0.44 per share to buy UK£85k worth of the stock. Although the purchase only increased their holding by 2.0%, it is still a solid purchase in our view.

See our latest analysis for Accrol Group Holdings

The Last 12 Months Of Insider Transactions At Accrol Group Holdings

In fact, the recent purchase by Executive Chairman Daniel Wright was not their only acquisition of Accrol Group Holdings shares this year. Earlier in the year, they paid UK£0.38 per share in a UK£380k purchase. Even though the purchase was made at a significantly lower price than the recent price (UK£0.48), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Accrol Group Holdings insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
AIM:ACRL Insider Trading Volume November 28th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Accrol Group Holdings insiders own 4.8% of the company, worth about UK£7.3m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Accrol Group Holdings Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Accrol Group Holdings insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Accrol Group Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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